The analysts of the major Swiss bank UBS put it in a nutshell: they have raised the price target of the largest listed copper producer Freeport McMoRan. The latter did indeed present a result for the third quarter of 2020 that was affected by the corona hullabaloo. But the outlook for next year and the year after is very good, according to UBS.
The arguments that copper should be an extremely interesting metal and therefore a very promising investment, apply supportively to many companies with copper projects.
The Swiss stock market specialists give three points in particular why they are so bullish for copper. Firstly, they expect an increase in Chinese construction completions next year. This phase is particularly copper-intensive because of cable laying and the like. Secondly, Chinese investment in power infrastructure will be increased by two percent, financed by special bonds in the order of more than three trillion yuan, of which currently around 20 percent of potential investment is still outstanding.
Third, UBS analysts expect global growth outside China to recover from the low corona-damaged levels.
Copper demand should therefore support the price of the reddish industrial metal. This in turn will benefit copper companies such as Copper Mountain Mining and Filo Mining and will attract investor interest.
Copper Mountain - https://www.youtube.com/watch?v=yv1ZvZVmf8M - owns 75 percent of the copper project of the same name in British Columbia. Production is expected to increase from 90 million pounds of copper equivalent per year at present to 120 million pounds of copper equivalent per year over the next few years.
Filo Mining - https://www.youtube.com/watch?v=1SLBQ3ybPJY&t=19s - a member of the Lundin Group, is developing the Filo del Sol copper-gold-silver property. Located in Chile/Argentina, the deposit will be expanded using diamond drill rigs.
Current company information and press releases from Copper Mountain Mining (www.resource-capital.ch/en/companies/copper-mountain-mining-corp/) and Filo Mining (www.resource-capital.ch/en/companies/filo-mining-corp/).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
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